Orig­i­na­tor helps 36 000 fam­i­lies buy homes

Weekend Argus (Saturday Edition) - - PROPERTY -

OC­TO­BER was a record month for mort­gage orig­i­na­tion group Bet­terBond Home Loans, with more than 3 600 home loans be­ing for­mally granted to home buy­ers for whom the group had sub­mit­ted ap­pli­ca­tions to the banks.

“That brought the to­tal num­ber of fam­i­lies we have helped to ac­quire homes over the past year to more than 36 000,” says Bet­terBond chief ex­ec­u­tive Shaun Rade­meyer.

Also, the value of the bonds granted through the group last month was more than R3 bil­lion – or about 25 per­cent of the monthly value of bonds be­ing reg­is­tered by the Deeds Of­fice.

“It also re­veals a healthy re­cov­ery in the prop­erty mar­ket since the 2009 re­ces­sion, when bond ap­proval rates plum­meted and we were able to se­cure only about R1bn worth of bonds a month for our clients.”

At the time, ac­cord­ing to the Deeds Of­fice, t he value of bonds reg­is­tered na­tion­ally was only about R5bn a month – down from a high of about R32bn a month dur­ing the boom years, when Bet­terBond was achiev­ing about R6bn in grants a month.

Deeds Of­fice fig­ures show that more than R10bn in mort­gages are be­ing reg­is­tered each month.

The fig­ure has been grow­ing for two years, and all indi­ca­tions are that Oc­to­ber’s fi­nal fig­ure will have been the high­est in the past five years, says Rade­meyer.

How­ever, the rate of growth in to­tal house­hold mort­gage bal­ances is now only about 2.7 per­cent a year, so Bet­terBond is well ahead of the curve, hav­ing achieved a 21 per­cent year-on-year growth in the value of grants se­cured in the 12 months to the end of Au­gust – and a 23.85 per­cent year-on year-growth for the 12 months to the end of last month.

“Our lat­est sta­tis­tics show that our ini­tial de­cline rate (the per­cent­age of ap­pli­ca­tions re­fused by the first lend­ing in­sti­tu­tion to which they are sub­mit­ted) showed a yearon-year drop of al­most 9 per­cent at the end of last month, to only 38 per­cent of ap­pli­ca­tions sub­mit­ted.

“At the same time, the ra­tio of ap­pli­ca­tions de­clined by one bank but ap­proved by at least one other showed a year-onyear in­crease of 18 per­cent at the end of last month, re­sult­ing in a 9.5 per­cent in­crease in the com­pany’s av­er­age ap­proval ra­tio to just over 75 per­cent.”

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